Cablevision Posts Fourth-Quarter Profit

Published 7:00 pm, Monday, February 10, 2003

Cablevision Systems Corp. Tuesday said it swung to a fourth-quarter profit, reversing a loss in the previous year, when restructuring charges and slow sales at The Wiz consumer-electronics chain pulled down the bottom line.

The cable-television and entertainment company reported net income of $517.4 million, or $1.62 a share. In the fourth quarter of 2001, Cablevision turned in a net loss of $281.6 million, or 98 cents a share.

Revenue edged up 2.4 percent to $1.15 billion from $1.12 billion.

Results for the latest quarter included restructuring charges and other items, while the results for the same period a year earlier included a restructuring charge of $52.9 million and a $15.3 million charge for debt retirement, among other items.

Cablevision, in Bethpage, N.Y., provides cable-TV service in the New York metropolitan area and operates an array of other businesses, including Lightpath business-communications services, New York's Radio City Music Hall, The Wiz consumer-electronics retail chain and Clearview Cinemas in the New York area. Cablevision is also a 50 percent partner in Fox Sports Net and operates Madison Square Garden and the Knicks and Rangers sports teams.

Cablevision said Monday that it will exit the consumer-electronics business by the end of the second quarter, and may sell or close the remaining 17 Wiz stores.

Last summer, Cablevision outlined a plan to close 26 unprofitable Wiz stores. The plan, aimed at ensuring that the company will be fully funded through 2003, also included cutting staff, selling Clearview Cinemas, and reducing capital spending.

For the full 2002, net income plunged 91 percent to $90.1 million, or 28 cents a share, from $1.01 billion, or $3.53 a share, for 2001. Revenue rose 3.2 percent to $4 billion from $3.88 billion.